HSBC: China to be world's biggest economy by 2030

A night view of the Pudong New Area skyline with the Oriental Pearl TV Tower and other skyscrapers in Pudong, Shanghai, Jan 22, 2017. [Photo/IC]

China will overtake the United States to become the world's biggest economy by 2030, economists at HSBC Holdings Plc predicted in a study published on Tuesday, Bloomberg reported.

The study also forecasts that China will remain the biggest contributor to global economic growth over the next decade.

It predicts China's GDP will increase from $14.1 trillion today to $26 trillion in 2030, while the GDP of the US will grow slowly from $20.4 trillion to $25.2 trillion.

The forecast stands in sharp contrast to the claim made by US President Donald Trump last month that China was no longer on track to surpass the US in a very short period of time. However HSBC's prediction is backed by another made by the International Monetary Fund in July, which also said China could become the world's largest economy by 2030.

The HSBC study also said emerging markets are expected to contribute to 70 percent of global expansion by 2030.